Idaho Real Estate Salesperson Exam — All Questions

Under Idaho's Brokerage Representation Act, a brokerage may work with a consumer as:

• a.Only a single agent
• b.An agent, a limited dual agent, or a nonagent✓
• c.Only a transaction broker
• d.A subagent of the buyer only

The Idaho Brokerage Representation Act allows a brokerage to work with a consumer as an agent, a limited dual agent, or a nonagent. The relationship is established by written agreement, and the type of representation determines the duties the brokerage owes.

Idaho requires a licensee to give a consumer the agency disclosure brochure:

• a.At the first substantial business contact, before the consumer shares confidential information✓
• b.Only after an offer is accepted
• c.At the closing table
• d.Only if the consumer requests it

Idaho requires the licensee to provide the agency disclosure brochure at the first substantial business contact, before the consumer discloses confidential information. The brochure explains the available brokerage relationships so the consumer can make an informed choice.

Under Idaho law, whether an agency relationship exists is determined by:

• a.Which party pays the commission
• b.The order in which the parties were contacted
• c.A written agreement between the brokerage and the client, not by who pays compensation✓
• d.The listing price of the property

Under the Brokerage Representation Act, the relationship is established by written agreement, and compensation alone does not determine or create an agency relationship. The written agreement, not the source of payment, defines whether a consumer is a represented client.

Under Idaho's Brokerage Representation Act, agency representation of a buyer or seller may be created:

• a.orally, if the licensee documents the conversation in the file
• b.only by a separate written document agreeing to representation✓
• c.by implication once the brokerage begins showing the buyer property
• d.automatically when the brokerage is promised a commission

A buyer or seller is not represented unless the consumer and the brokerage agree to representation in a separate written document; no agency may be assumed, created orally, or created by implication. Cite: Idaho Code 54-2084(1).

An Idaho brokerage working with an unrepresented buyer (a customer) owes that buyer:

• a.no legal duties at all, because there is no written agreement
• b.the full duties owed to a client, except confidentiality
• c.ministerial acts, honesty, and disclosure of adverse material facts✓
• d.a duty to inspect the property and independently verify the seller's statements

As a nonagent the brokerage still must perform ministerial acts with honesty, good faith, reasonable skill and care, account for money, and disclose adverse material facts actually known or that reasonably should have been known. Cite: Idaho Code 54-2086(1).

Without the express written consent of the client it pertains to, an Idaho limited dual agent may NOT disclose:

• a.that the seller is willing to accept less than the listing price✓
• b.an adverse material fact about the condition of the property
• c.that the property is burdened by a recorded easement
• d.the square footage shown in the county assessor's record

A limited dual agent may not reveal, without express written consent, that a buyer will pay more than list price, that a seller will take less, the parties' motivations, or that either will accept other price or financing terms. Cite: Idaho Code 54-2088(4)(a).

When an Idaho brokerage acting as a limited dual agent assigns separate sales associates to the buyer and the seller, a fact known elsewhere in the brokerage:

• a.is imputed to both assigned agents as a matter of law
• b.is imputed only to the assigned agent acting for the seller
• c.must be disclosed to both clients before closing occurs
• d.is not imputed to an assigned agent of the brokerage✓

Knowledge of the brokerage, its designated broker, or other associated licensees is not imputed to an assigned agent so as to create an impermissible conflict, though the agent's duty as to facts actually known is undiminished. Cite: Idaho Code 54-2088(5)(b).

Idaho requires that every purchase and sale agreement contain:

• a.a copy of the agency disclosure brochure attached as an exhibit
• b.a representation confirmation section completed for buyer and seller✓
• c.the designated broker's notarized signature on the final page
• d.the commission file number of each brokerage representation agreement

The purchase and sale agreement must include a representation confirmation section in which the parties check whether the brokerage acted as agent, limited dual agent, limited dual agent with assigned agents, or nonagent for each side. Cite: Idaho Code 54-2085(4).

In an Idaho transaction, the type of brokerage relationship must be established and the required written agreements executed:

• a.no later than the preparation of a purchase and sale agreement✓
• b.no later than the closing of the transaction
• c.within three (3) business days after the seller accepts the buyer's offer
• d.before the licensee may show the consumer any property

The brokerage's relationship type must be established and the agreements executed no later than the preparation of a purchase and sale agreement, and disclosed to both parties by that same deadline. Cite: Idaho Code 54-2085(3) (last amended 2021, ch. 174).

In Idaho, delivering the agency disclosure brochure and obtaining a signed representation confirmation:

• a.creates an agency relationship with that consumer
• b.creates a nonagency relationship lasting one (1) year
• c.creates no brokerage relationship by itself✓
• d.substitutes for a written representation agreement

Neither the brochure nor the confirmation creates a brokerage relationship; a separate, signed, written agreement is required for that purpose. Cite: Idaho Code 54-2085(6).

In Idaho, a written agreement that a seller will pay a commission to the brokerage working with the buyer:

• a.makes that brokerage an agent of the seller
• b.makes that brokerage a limited dual agent
• c.must be filed with the commission within ten (10) days
• d.does not by itself create an agency relationship✓

Payment of compensation, or a written agreement only for payment of compensation to a brokerage, does not constitute an agreement for agency representation or otherwise create an agency relationship. Cite: Idaho Code 54-2089.

An Idaho brokerage's agency relationship ends at the earliest of:

• a.closing, the client's death, or the broker's written request
• b.performance of the representation, agreement, or expiration✓
• c.expiration, withdrawal of the listing, or ninety (90) days
• d.closing, expiration, or a written order of the commission

The relationship begins on the date shown in the written agreement and ends at the earliest of performance or completion of the representation, agreement by the parties, or expiration of the agreement. Cite: Idaho Code 54-2091(1).

Idaho law provides that a client is NOT liable for a wrongful act or misrepresentation of the client's broker unless:

• a.the client knew or reasonably should have known of it✓
• b.the client signed the purchase and sale agreement
• c.the broker was acting as a limited dual agent
• d.the misrepresentation appeared in the listing

Idaho abolished vicarious liability: a buyer or seller client is not liable for the broker's or the broker's licensees' wrongful act, error, omission, or misrepresentation absent actual or constructive knowledge. Cite: Idaho Code 54-2093(1).

Unless greater duties are specifically agreed to in writing, the duties an Idaho brokerage owes a represented client are:

• a.common law fiduciary duties enforceable in equity
• b.the same duties that are owed to a customer
• c.statutory duties that are expressly not fiduciary✓
• d.duties set by the local association of REALTORS

The Brokerage Representation Act abrogates the common law of agency for regulated transactions; absent a written agreement for greater duties, the duties owed a client are not fiduciary and not subject to equitable remedies for breach of fiduciary duty. Cite: Idaho Code 54-2094.

Unless otherwise agreed in writing, an Idaho brokerage representing a client has:

• a.a duty to inspect the property before agreeing to list it
• b.no duty to conduct an independent inspection of the property✓
• c.a duty to verify every statement the seller makes in writing
• d.a duty to order a professional inspection for the buyer

Absent a written agreement to the contrary, a brokerage and its licensees owe a client no duty to independently inspect the property, to verify statements about it, or to investigate either party's financial ability. Cite: Idaho Code 54-2087(7).